Race Car Drivers

Earnings for drivers vary based on their skill level, experience, popularity, sponsorships, team affiliations, and performance bonuses (which comprise a substantial proportion of their earnings). Top drivers typically have a contractual agreement with a sponsor and receive a percentage of the prize money.

Although top drivers earn millions of dollars annually, most race car drivers do not make a lot of money. A salary survey by ZipRecruiter.com found that race car drivers had average earnings of $29,114 in 2025. Their earnings ranged from $19,000 to $38,500 or more.

RacingNews365.com, a racing industry Web site, reports that the top 20 Formula One drivers earned between $500,000 and $65 million in 2025. NASCAR drivers earned an average of $112,038 annually. In a recent year, the top 10 earners on the NASCAR circuit received between $9 million and $17 million. The Indianapolis 500 is the premier event in the IndyCar Series. In 2024, Josef Newgarden won the Indianapolis 500 and received a prize of $4.2 million.

Many race car drivers are independent contractors, so they must provide their own health insurance and other fringe benefits. Others negotiate with their teams to obtain access to such benefits via company programs.